[EL] query on 501c4 IEs and the FEC PAC rules

[John Pomeranz]

Correct.  501(c)(4)s argue (validly, I think) that their "major purpose" is not efforts to influence federal elections.  Significant support for that argument comes from the tax law's requirements for 501(c)(4) status.  To qualify for its exemption from federal income tax, a 501(c)(4) must have a primary "social welfare" purpose, which does not include efforts to intervene in any political campaign.  

There was some interesting debate on these issues, including the intersection of FECA's (or, really, the Supreme Court's) "major purpose" and the tax law's "primary purpose," during the FEC's efforts to craft a political committee rule in 2004.   Yet what constitutes major purpose and primary purpose remain, as you know, a hot topic of debate.


John Pomeranz
Harmon, Curran, Spielberg & Eisenberg, LLP
1726 M Street, NW, Suite 600
Washington, DC  20036
office: 202.328.3500
mobile: 703.597.7663
fax: 202.328.6918
e: jpomeranz at harmoncurran.com 



-----Original Message-----
From: law-election-bounces at department-lists.uci.edu [mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of Rick Hasen
Sent: Friday, March 16, 2012 6:07 PM
To: law-election at uci.edu
Subject: [EL] query on 501c4 IEs and the FEC PAC rules

I understand that in this election cycle and the last (since CU) 501c4 organizations (which did not qualify as MCFL/QNC corporations) have been running not just electioneering communications ads, but also making independent expenditures (including express advocacy).
How do 501c4s which are making IEs argue that they need not register with the FEC as a political action committee?  Are they arguing that electioneering is not their major purpose (along the lines of how they argue to the IRS that election related activity is not the "primary activity" for tax purposes)?

Thanks.
Rick
--
Rick Hasen
Chancellor's Professor of Law and Political Science UC Irvine School of Law
401 E. Peltason Dr., Suite 1000
Irvine, CA 92697-8000
949.824.3072 - office
949.824.0495 - fax
rhasen at law.uci.edu
http://law.uci.edu/faculty/page1_r_hasen.html
http://electionlawblog.org
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